University of Central Oklahoma
THURSDAY March 2, 1995
The Student Voice Since 1903
Interest rate hikes: Borrow now, pay later? By Cynthia Chung Staff Writer UCO staff, faculty and students who carry credit card balances may not have welcomed the Feb. 1 interest rate hike by the Federal Reserve. Short-term interest rates, which now stand at 6 percent, have been raised for the seventh time in the past 12 months, states an article in the Feb. 13 issue of the U.S. News and World Report. Dr. Joseph Johnson, assistant professor of economics at UCO, said that for consumers, the rate increase means "borrowing will be a bit more expensive." Short-term borrowing includes
Monthly credit card payments are destined to increase, says professor adjustible mortgage payments, automobile loans and financial aid loans. Dr. Minje Jung, assistant professor of finance at UCO, said the recent hike will lead to higher monthly payments for those who carry balances on their cards. "It is not sensible to carry cards with a high percentage of interest (APR)—and anything over 17 percent is too high," said Jung. Jung's advice to consumers is to get rid
of credit cards that are neither needed nor used frequently and to "shop around for a lower rate plastic card." A CNN report on Feb. 23 places last year's national credit card debt at a staggering $337 billion. At least 70 percent of credit card holders do not pay off their debt in full at the end of the month, states the report. The report also said consumer spending has gone up by as much as 15 percent,
`Right sizing' staff `South Central' offered high school, handicapped drivers' training, but soon it may just leave several UCO instructors jobless
Oklahoma Safety Institute director Dr. Lonnie Gilliland displays an award he won in November for Public Service. (Staff File Photo by Christopher Smith)
After the recent discontinuation of Edmond's high-school driving program at UCO, some Vocational Rehabilitation directors and staff at the South Central Safety Institute fear the Handicapped Driver's Training program will be next on the chopping block. As of June 31, two men will lose their job and another will be reassigned to teaching. Dr. Lonnie Gilliland, director of the South Central Safety Institute, who has been associated with the driving program for 23 years, has been offered a full-time academics job. Also, Stan Dowers, coordinator of the Driver's Improvement Program, who has been with the driving school for 10 years, and instructor Mark Howard who has been with the school for three years, have been fired. IrSee FIRED, Page 13
despite the fact that earnings have only increased by a modest three percent. Johnson said, however, that for borrowers, the interest rate hike poses little cause for alarm. "Credit card interest rates, for example, change more slowly and stay more stable," he said. Federal Reserve Chairman Alan Greenspan said the hike was a calculated move to slow down an economy that has been growing too rapidly, but Johnson warns the move may backfire as "people try to second-guess the Fed." In anticipation of further interest rate increases, people would borrow now rather than later, said Johnson.
Committees to offer $18,500 for faculty, staff 'incentive plans' ment of this program took place two years ago when the Faculty Senate proposed an incentive Two committees at UCO plan for professors. have plans to begin offering The program, which is curincentives to reward members of rently in the second stage of the faculty and staff for out- development, will establish the standing performance. guidelines and the criteria for the The Faculty Merit Credit award, said Dr. Bill Radke, Committee and the UCO chairman of the Faculty Merit President's Partners Staff Credit Committee. Development Program have Although all the rules have both raised $15,500 to be used as not been established yet, Radke hopes for the plan to take effect incentive plans. The money to be used in both in the Fall of 1995. committees comes from interest During the third and final income from a gift to UCO for stage of development, there will faculty that is matched by uni- be a public brochure and the guidelines will be printed in the versity funds. The Faculty Merit Credit faculty handbook, said Radke. Committee will award recipients "I applaud any efforts directwith credits which will enable ed towards rewarding hard them to buy equipment. books, working employees and faculty and allow them to travel, but will at the university," said Dr. not reward cash awards. Ronald Miller. The first stage in the develop- See MERIT, Page 4 By John Clanton Staff Writer
INSIDE TODAY Editorial
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Letters
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World Wrap
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Around Campus
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Sports 10-12 Comics
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DULL?
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While most of the nation rests after the climax of "Fat Tuesday" local festivities proved to be not so productive.
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TATTOOED
As students and professors work toward careers, they often seek to vanquish the markings of their youth.
SPORTS
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For NCAA Division ll wrestling this weekend, central Oklahoma is picked as the favorite.
